-
With the increasing prevalence of electric vehicles worldwide, insurance for these cars has become an important topic for drivers and insurance companies. So how much does it cost to insure electric cars? And what features does it provide?

In general, the cost of insuring electric cars is typically higher than that of traditional cars, attributed to several factors:

1. High Cost of Electric Cars:

Electric vehicles tend to be more expensive than traditional cars, resulting in higher repair or replacement costs in case of an accident.

2. Potential Battery Risks:

Batteries are crucial components in electric cars, and damage to them can lead to complete vehicle breakdown. Insurance companies often impose higher fees to cover electric car batteries in case of accidents.

3. Limited Insurance Company Experience:

Electric cars are still a relatively new technology, and insurance companies have limited data on electric car accidents. As a precautionary measure, insurance companies may charge higher fees for electric car insurance.

However, there are factors that can help reduce the cost of electric car insurance, including:


  • Clean Driving Record: Drivers with clean records typically qualify for lower insurance rates compared to those with poor records.
  • Comprehensive Coverage: While comprehensive insurance offers broader coverage than basic insurance and is usually more expensive, it may help lower the overall insurance cost in the event of an accident.
  • Discount Opportunities: Some insurance companies offer discounts on electric car insurance for drivers who purchase or charge their vehicles at home.
  • Securing insurance for electric cars is essential for financial protection in case of accidents. It's crucial to compare offers from different insurance companies to find the best deal.

Why do electric cars cost more to insure?

Despite the narrowing gap, electric and hybrid cars, combining gas and battery power, often come with higher purchase prices compared to their gas-only counterparts. Typically, pricier vehicles incur higher insurance costs, reflecting increased expenses for repairs or replacements. Although electric vehicles have fewer moving parts, the cost of repairing or replacing these parts, especially the battery pack, can be substantial due to safety protocols.

Furthermore, the limited availability of repair shops with technicians trained for electric vehicles may result in higher repair charges due to specialized expertise. This scenario contributes to potentially elevated insurance costs for electric and hybrid vehicle policyholders, unrelated to the driver's profile but rather associated with the car's technology.

It's crucial to recognize that this additional risk stems from the car's technology, not the driver's behavior. While electric vehicles currently may not be the most budget-friendly to insure, as they become more prevalent and the infrastructure for repairs improves, the cost of fixing them and corresponding insurance rates should decrease.

Is insurance more expensive for electric vehicles?

Insuring an electric car might come with a higher price compared to a conventional gas-powered vehicle. The elevated cost of electric cars, coupled with intricate components, can contribute to increased repair or replacement expenses in the event of an accident. This, in turn, may result in higher insurance premiums, especially for those with comprehensive and collision coverage. Nevertheless, potential tax incentives and long-term savings on fuel and maintenance serve as mitigating factors, helping to balance out the impact of elevated insurance rates.

How much is Tesla insurance UK

What is the cost of insuring a Tesla Model Y in the UK? According to MoneySuperMarket data, the average annual premium for a fully comprehensive policy with one driver holding a full UK driving licence is £479, making it the most affordable Tesla to insure compared to the Model S (£615), Model 3 (£821), and Model X (£1248).

The insurance cost for your Tesla Model Y depends on various factors, with the vehicle's base price being a significant determinant. Age is another influential factor, particularly when leasing a Tesla Model Y.

The Tesla Model Y lineup includes the rear-wheel drive version priced at £44,990, the Long-Range variant at £52,990, and the Performance edition at £59,990, positioning it as a premium choice in the automotive market.

In contrast, cars like the SKODA Fabia Hatchback and the Citroen C1, both in insurance group 1, offer smaller sizes, less technology, and more budget-friendly materials, resulting in considerably lower On The Road (OTR) prices.

Opting for a Model Y lease brings additional savings, such as reduced charging costs and a 2% Benefit in Kind tax rate for business car leasing.

While Tesla vehicles are considered premium and may have higher insurance costs due to quality materials and advanced technology, their commitment to safety is evident. The Model Y, in particular, has received a five-star safety rating from Euro NCAP, with an impressive 97% score for adult occupants.

Although insurance for electric cars may involve higher repair costs for certain components, Tesla's emphasis on safety helps mitigate concerns. When leasing a Tesla with Carparison, you'll also receive a complimentary no-obligation GAP insurance consultation for added peace of mind during your lease term. 


Electric vehicle insurance provides coverage for theft, encompassing not only the electric car itself but also its battery and other components. Additionally, in the event of a fire, the insurance extends to cover damages, ensuring that repairs are included if the electric car or its battery sustains damage due to a fire incident.

Are there ways to reduce electric car insurance costs?

Certainly, there are strategies to lower electric car insurance expenses. Similar to traditional auto insurance, maintaining a clean driving record—free of at-fault accidents or moving violations—qualifies you for more favorable rates. Additionally, factors like your age and location play a role in determining your car insurance premium.